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Abu Dhabi Property Market Outlook

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Rate of capital value declines slows

The first quarter of 2018 has recorded a slowing in the rate of capital value declines across Abu Dhabi’s residential freehold investment zones. While values receded by 1.7% in the three months to the end of March 2018, the annual rate of decline slowed to -6.2%, following the 6.9% fall in residential values during 2017 overall. The latest price falls mean that average values, which stand at AED 1,090 psf, are now at levels not seen since the end of 2013.

Apartments in Al Reef Downtown emerged as the weakest performer over the last 12 months, with values falling by an average of 14.7%, leaving them at AED 725 psf.

The surge in the number of recent simultaneous completions, coupled with static, but weak, buyer demand has added to the pressures in this submarket.

Al Reef Villas were the next weakest performing market, with average capital values receding by 11.8% over the same period.

Villas at Al Raha Gardens, Golf Gardens and apartments at Al Ghadeer were the only locations to see no change in prices over the twelve months to the end of March. All other residential investment submarkets recorded varying degrees of price corrections over the same period.

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